With regards to Loans-
Puys, I was just going through some of the loan schemes. There is no such things called "tie-up" of a bank. As per my findings, every college is rated under an umbrella , by every banks individually. So better the college, lesser might be the interest charges and the principal amount that could be availed under loan may be more. I guess that is it.
Morever, when i was scanning through the loans provided by some government banks. I noticed a catch.
You are not liable to pay any amount till you pass out. But the interest that is accrued in the process would be added to the principal loan after we complete the college. Hence EMI will be calculated on effective sum (Principal + Accrued Interest).
While the point to reckon with private banks is - The accrued interest for education loan availed, is under section 80E, a part of non-taxable income. And we have an option to pay this Simple interest, calculated at around 13%, per month, while pursuing our PG.
EX- for a loan of 2,00,000 per year, @13% would equate to around 26000 rupees. If say our parents pay around 2000 per month to the bank, by the time we pass out, our EMI will be calculated on a principal of 2,00,000 only. Which in case of public ssector banks, will be 2,52,000 .
I hope i made my point clear.